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Old 06-08-2019, 01:53 PM
joelcheung joelcheung is offline
SOA
 
Join Date: Mar 2018
Location: Singapore
Studying for Exam STAM
College: Singapore Management University, sophomore
Posts: 9
Default SOA Exam STAM #328

The solution states that 'For losses in AY4 the projection is 2.333 years', and 'For losses in AY3 the projection is 3.333 years'.

May I check what is the start and end points of the abovementioned durations?

Taking the case of the losses in AY4, is the 2.333 years measured from...

1. July 1 AY4 to Nov 1 AY6 (average accident date for policies sold from Nov 1 AY5)?

2. July 1 AY5 (the average accident year of policies sold from July 1 AY4 that will be in effect through July 1 AY6 [This is based on ACTEX STAM-841 Section 41*]) to Nov 1 AY7?

*:This section states that policies can become effective from Jan 1 Year Z to Dec 31 Year Z and complete data for policy year Z is not available until Dec 31 of Year Z+1, and thus average accident date is Dec 31 Year Z.

Thank you!
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